-- Taiwanese personal computer makers Acer and Asustek expect to
launch products using Microsoft's Windows 8 operating system in
October
-- Acer and Austek unveil Windows 8-based tablets, laptops and
desktops that are all touch-screen-capable
(Recasts throughout, adds Asustek's plan to launch Windows 8
devices.)
By Lorraine Luk
TAIPEI--Taiwanese personal computer makers Acer Inc. (2353.TW)
and Asustek Computer Inc. (2357.TW) said Monday they expect to
launch Windows 8-based consumer products in October, as the PC
industry pins its hopes for growth on Microsoft Corp.'s (MSFT)
next-generation operating system optimized for touch-screen
devices.
Both Acer and Asustek unveiled new devices that run on a preview
version of Windows 8 a day ahead of Tuesday's official opening of
the annual Computex computer industry trade show in Taipei. Their
devices--tablets, laptops and desktops--are equipped with
touch-capable screens.
Their plans to release touch-enabled Windows 8 devices come as
PC makers are counting on the new operating system to help them
regain lost ground against Apple Inc. (AAPL). Apple's iPhone and
iPad have helped shape the market for mobile Internet devices such
as smartphones and tablets, which now represent some of the
fastest-growing segments of consumer electronics. The traditional
PC market, by contrast, has seen only modest growth in recent
years.
"We have high hopes for Windows 8" as a major incentive for
people to replace their PCs or buy new tablets, said Asustek Chief
Financial Officer David Chang.
Acer Chief Executive J.T. Wang said he expects the company's
Windows 8-based products to boost its revenue in the fourth
quarter. The products will initially target developed markets and
won't try to compete on pricing, as the focus will be on their
improved functionality, he said.
In a bid to compete with Apple, several PC makers, including
Acer and Asustek, have released thin, lightweight laptop PCs,
collectively known as ultrabooks, that use flash memory chips
instead of hard drives so the devices can be started up more
quickly.
Ultrabook sales so far haven't met the industry's expectations,
and PC makers expect Windows 8 to help the still-nascent ultrabook
market gain traction. Ultrabooks are expected to account for up to
20% of the notebook PC shipments at Acer this year, and 15% at
Asustek, the companies said.
Windows 8 will help bring ultrabooks closer to Apple's Macbook
Air, and Acer's Windows 8-based devices look competitive, said
Barclays Capital analyst Kirk Yang. Still, for Windows-based
ultrabooks to become attractive, their prices have to come down, he
added.
Ultrabooks typically cost a few hundred dollars more than
conventional laptops. Acer said Monday that its new Windows 8
ultrabooks could be above or below $1,000, depending on
specifications and features.
The market for Windows 8 devices is also a battlefield for major
computer chip technology firms. In addition to PCs running
processors from Intel Corp. (INTC) and Advanced Micro Devices Inc.
(AMD), Windows 8 will also power tablets and laptops running
low-power processors from U.K.-based ARM Holdings PLC (ARMH), which
designs most processors for mobile computing devices. Intel and ARM
have been trying to expand into each other's territories, with ARM
making more chips for PCs while Intel strengthening its offerings
for tablets and smartphones.
Acer said Monday that it will initially focus on Windows 8
devices that run on Intel chips, working within a traditional PC
ecosystem that the company is already familiar with. Acer said it
expects to launch Windows 8 tablets with ARM processors in the
first quarter of next year, but added that it has no plans to use
ARM processors for its non-tablet PCs.
Asustek showed a Windows 8 tablet with an ARM processor Monday
and said it plans to launch it in the fourth quarter.
--Juro Osawa in Hong Kong contributed to this article.
Write to Lorraine Luk at lorraine.luk@dowjones.com